A Big Bounce

As shown in the first chart below, the S&P 500 has moved nicely back above its 50-day moving average (white line) today. The index bounced right off of the bottom of its trading range (blue shading) on Monday and hasn’t looked back.

Underlying breadth has been extremely strong as well. As shown in the second chart, 71% of S&P 500 stocks are back above their 50-days. This reading got all the way down to 25% just last Friday, and to bounce back to 71% in just three days is impressive.

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